Analysing the supply chain network reconfiguration under disruption risk environment. (12th July 2022)

• Record Type: Journal Article
• Authors: Rajagopal, Varthini; Venkatesan, Shanmugam Prasanna; Mohan, Usha; Gaur, Rishabh; Jha, Shubham
• Is Part Of: International journal of industrial and systems engineering. Volume 41:Number 3(2022)
• Page Start: 295
• Page End: 335
• Publication Date: 2022-07-12
• Subjects: dynamic configuration -- disruption -- reactive mitigation strategies -- risk-attitude -- responsiveness -- AUGMECON; Systems engineering -- Periodicals; Industrial engineering -- Periodicals; 620.001171
• Languages: English
• ISSNs: 1748-5037

Abstract

A p -robust supply chain network (SCN) reconfiguration model under disruptions in dynamic mid-term horizon considering decision-maker (DM)'s risk-attitude is presented. Reconfiguration of SCN within a time horizon by utilising excess resources of undisrupted facilities, outsourcing and capacity expansion is studied. At first, the single-objective cost minimisation problem is formulated and extended as a multi-objective problem incorporating responsiveness as another objective. Pareto solutions are obtained using augmented ε-constraint (AUGMECON) method. The major inferences include: 1) the cost minimisation model opens a fewer facility under nominal condition and prefers capacity expansion strategy under disruptions; 2) the inclusion of responsiveness objective results in opening more facilities with outsourcing as preferred reactive strategy; 3) DM's attitude significantly affect structural decisions but not the parametric decisions such as capacity expansion, material flow redirection, and outsourcing; 4) a neutral DM selects a dispersed and diversified portfolio of facilities, whereas averse DM opens backup facilities closer to critical facilities.